According to Nihon Keizai Shimbun (Nikkei), one of the world’s largest financial newspapers and the organization behind the Nikkei 225 stock index, Japan’s Financial Services Agency (FSA) will propose legislation next year to limit the issuance of bank stack coins and bank transfers. Just. … In theory, this would prevent organizations like Tether (USDT), which is not a bank and only regulated in BVI, from doing business with Japanese customers.
However, the proposed new rules will only affect some stablecoin issuers. For example, the issuance department of the US Dollar (USDC) plans to become a US-registered crypto bank in the midst of strict regulatory measures. Stablecoin issuers, which operate only as a private company, are generally exempt from financial reporting, auditing or regulatory oversight, leading to an obvious speculative claim that Tether may not have enough reserves to support USDT.
In addition, the FSA also plans to tighten rules in areas such as preventing the transfer of criminal dividends, verifying user identities and reporting suspicious transactions to both stablecoin issuers and wallet providers.
Although private stablecoins are innovative, they are in direct competition with and adopt central banks ‘digital currencies or central banks’ digital currencies. In Japan, the central bank plans to issue a digital yen called the DCJPY by the end of next year. It is backed by a consortium of nearly 70 companies, including the country’s largest financial institutions, all of which participated in the DCJPY trial. There is currently a stable digital yen in circulation called “GYEN” and another pending launch supported by Circle.